we are giving gratuity as a part of CTC to our employees. is Gratuity cover under ESI wage limit ? (Means ESI calculate on Basic+HRA+TA+GRATUITY+Other allowance)
09 January 2015
Gratuity will not be covered under ESI wage limit.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
09 January 2015
Sir, Our company Hired Freshers, for this we are giving training for 6 months and also paying stipend.But we are not treating them as employees until they permanent, if we are not satisfy we send back them .
My question is, Is PF and ESI Payable on Stipend for these trainees?
09 January 2015
Yes ESI and PF payable on stipend for these trainees.
ESIC has Amended its definition of employee by amendment dated 24 May 2010, applicable from 1 June 2010, as per this definition the trainee/appreantice engaged either under SO or Appreantice Act, they shall be covered by the ESI Act.